Reported by Ariajegbe Sylvia Esezobor
Petrol prices fell by as much as N24 per litre at major depots in Lagos on Tuesday, sparking fresh hopes that filling stations across Nigeria could begin cutting pump prices in the coming days as they restock at the new lower rates. The reductions, the most significant single-day decline in weeks, came amid a sharp retreat in international crude oil prices, with Brent crude slipping below the $100 per barrel mark and West Texas Intermediate falling to around $91 per barrel. The development offers a glimmer of relief for Nigerian motorists who have endured weeks of rising fuel costs, with pump prices climbing to between N1,395 and N1,450 per litre in Abuja and other parts of the country.
In Lagos, the commercial nerve centre of the downstream sector, Ascon, Integrated and Sahara depots led the reductions, cutting their petrol prices by N24 per litre to N1,327 from N1,351. Pinnacle also slashed its rate by N24 to N1,326 from N1,350, while MRS reduced its price by N20 to N1,332 from N1,352. The Dangote Petroleum Refinery, which had raised its gantry price by N85 to N1,350 per litre on September 12, reduced its price by N25 to N1,325 per litre on Monday, setting the benchmark for the latest round of cuts across the country. The refinery's decision to lower its price followed a sustained decline in international crude oil prices, with Brent falling from a peak of about $109 per barrel last week to under $100 per barrel by Tuesday.
The reductions were not confined to Lagos. In Port Harcourt, Ascon and Integrated reduced their petrol prices by N5 each to N1,815 from N1,820, while Ibeto retained its price at N1,815. In Calabar, Mainland cut its price by N7 to N1,320 from N1,327, while Alkanes reduced its price by N2 to N1,325. In Warri, Keonamex reduced its price by N3 to N1,327, while Nepal cut its price by N1 to N1,329. The diesel market recorded even steeper declines, with Matrix in Warri reducing its Automotive Gas Oil price by N50 to N2,000 per litre from N2,050, while Masters in Port Harcourt cut its diesel price by N35 to N1,900 from N1,935. Prudent and Rain Oil in Warri also reduced their diesel prices by N10 each to N1,940 from N1,950. The sharper drop in diesel prices carries broader economic significance, as manufacturers, farmers, logistics firms and businesses depend heavily on diesel for transportation and backup power generation.
A petroleum products marketer who spoke on condition of anonymity said the depot reductions would likely put pressure on filling stations to review their pump prices, particularly outlets buying directly from the affected depots or replenishing their stocks at the new lower rates. He cautioned, however, that motorists may not see an immediate or uniform reduction. Stations still holding products purchased at higher prices may maintain existing pump prices until those stocks are depleted and replaced with cheaper supplies, he explained. Competition among filling stations could accelerate the transmission of lower depot prices to consumers, especially in areas where several outlets operate within close proximity. The extent of any reduction will also depend on transportation costs, operating expenses and retail margins, meaning the N20 to N24 decline recorded at some Lagos depots should not be interpreted as an automatic equivalent cut at the pump. Sustained lower energy costs, the marketer added, could benefit the wider economy by trimming transport and logistics expenses.
The Federal Government had convened a consultative meeting with refiners, depot owners, petroleum marketers and retailers on Tuesday to discuss competitive pricing of fuel and other petroleum products. The meeting, announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in line with provisions of the Petroleum Industry Act and the Federal Competition and Consumer Protection Act, was held against the backdrop of renewed pressure over petrol prices. The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said stakeholders could consider reducing petrol prices at the meeting, but he dismissed the possibility of selling petrol at N500 per litre, a demand recently made by organised civil servants. He said the N500 per litre target was not commercially viable under prevailing conditions in the downstream sector, stressing that retailers could not operate at a loss.
The NMDPRA has maintained that it does not fix petrol pump prices under the deregulated market framework established by the Petroleum Industry Act, but it has pledged to step up surveillance against price-gouging, collusion and under-dispensing. The Authority said it was working with the Nigeria Customs Service and other security agencies to intensify surveillance along border corridors and prevent product smuggling, while collaborating with the Federal Competition and Consumer Protection Commission to monitor exploitative practices. It has also opened dedicated reporting channels through which members of the public can report irregular pricing. The regulator's posture reflects the delicate balance it must strike in a market where prices are theoretically determined by supply and demand, but where consumers remain acutely sensitive to any perceived exploitation.
The latest depot price reductions represent a welcome reprieve in a sector that has endured significant volatility throughout 2026. Petrol prices had risen sharply from around N830 per litre earlier in the year to above N1,300 in many parts of the country, driven by a combination of rising international crude oil prices, exchange rate pressures and logistics costs. The Dangote Refinery's N85 increase on September 12 had pushed pump prices to near N1,500 in some cities, intensifying calls for government intervention. The subsequent decline in crude oil prices, triggered by renewed expectations of diplomatic engagement between the United States and Iran, has provided room for the downward adjustments now being seen at the depot level.
Industry watchers caution that the downward trend could reverse if crude oil prices rebound, as they have repeatedly in recent months. The marketer who spoke to journalists noted that crude oil prices, exchange rates and supply costs could still reverse the downward trend. For now, however, the direction of travel is downward, and Nigerians are watching closely to see whether the reductions at the depot level translate into meaningful relief at the pump. The coming days will reveal whether filling stations pass on the savings to consumers, or whether the gap between depot prices and pump prices remains stubbornly wide.
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